And in world devouring kraken news...

[A Black Falcon]

So... if I understand you correctly (sorry didn't really feel like reading the whole thing), that was a parody of some old wood cutting of what appears to be a squid having sex with a medieval Japanese woman? Uh, okay, weird, but still not sure what that has to do with the anime girl being attacked by an octopus, doesn't seem like anything like a "dream" to her anyway. Also, hate to be pedantic, but the logistics are ridiculous :D. I recall this scene from futurama:

It's not just an old woodcarving, it's also a VERY common thing in Japanese hentai (animated porn)... I have no idea why, but it is. Did you read the "influence" section in that article where it pointed this out?